If you have some cash to invest then there are a few ASX shares that could be very interesting to look at right now.
Businesses that are generating good underlying growth have a good chance of producing shareholder returns over the longer-term.
These two businesses are quality ideas that could be worth considering:
Pushpay Holdings Ltd (ASX: PPH)
Pushpay provides a donor management system, including donor tools, finance tools and a custom community app, and a church management system to the faith sector. It processes a lot of donation volume for large and medium US churches.
It very recently reported its FY21 result which included strong revenue growth, cash flow growth, expanding operating margins and growth of earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF).
FY21 operating revenue grew 40% to US$179.1 million, the gross profit margin rose from 65% to 68% and the EBITDAF margin went up from 22% to 34%. The growing profit margins is one of the compelling reasons to consider this ASX share as it adds revenue at a double digit pace.
Pushpay is expecting further underlying profit growth in FY22. The ASX share is also investing in the Catholic market to grow outside of its core customer base. Pushpay has set a goal of acquiring more than 25% of the Catholic church management system and donor management system market over the next five years.
The Catholic church is closely associated with many education providers and non-profit organisations, which presents further opportunities within the US and other international jurisdictions. The company continues to look at acquisition opportunities that could help it expand its customer base and deliver new products that can be sold more quickly than what could be done organically.
According to Commsec, the Pushpay share price is valued at 19x FY24’s estimated earnings.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
This is a leading exchange-traded fund (ETF) ASX share which is focused on US businesses that have strong competitive positions, or wide economic moats.
There are a few positive reasons why investors should be interested in this ETF.
It gives investors exposure to companies that Morningstar believes possess sustainable competitive advantages. The investment choices that make it into the ETF’s portfolio is fuelled by Morningstar’s forward-looking, rigorous equity research process.
The fees are very reasonable at 0.49%. You’re getting active management choices for passive investment fees.
Morningstar assigns each company it analyses an economic moat rating of ‘wide’, ‘narrow’ or ‘none’. Companies that are assigned a wide moat rating are those that Morningstar has a strong belief that excess returns will remain for 10 years, with excess returns more likely than not to remain for at least 20 years.
VanEck Vectors Morningstar Wide Moat ETF currently has 49 holdings, including names like Alphabet, Berkshire Hathaway, Yum! Brands, Lockheed Martin, Pfizer and Constellation Brands.
Over the last five years the ETF has produced an average return per annum of 18.6%.